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Performance-Based Pay

4 hours, 7 minutes
5.0 BACB, 4 general HRCI or 4 SHRM credits
Byron Wine, PhD, BCBA

“The organizational benefit is the alignment of pay/effort of employees to the company.” 

 Bryon Wine, PhD, BCBA on the benefits of performance-based pay.  



Pay for performance (PFP), is a controversial but ultimately effective management strategy. In this lecture, Dr. Wine details PFP and its benefits. He describes problems related with current management and wage strategies and offers alternative methods to improve work performance. Development of scorecards and calculations of profit index are further described, ending with Dr. Wine discussing how to implement PFP. 


Learning Objectives

What you’ll learn in the course and be able to do afterward 


  1. Describe traditional approaches to management. 

  1. Define PFP. 

  1. Compare open systems with closed systems. 

  1. List objections to PFP. 

  1. Describe problems with wages as named by Abernathy. 

  1. Describe alternatives to PFP. 

  1. Describe development of organizational scorecards. 

  1. Calculate profit-indexed performance pay. 

  1. Describe the steps in transitioning to PFP. 

  1. Describe the findings of research in PFP. 


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